Money is sort of like a dirty word, and for me almost always evokes negatives. There are loads of people who don't have near what I have, and I can usually only focus on what I want instead of what I've already got. This may be because we live in a world where it's so easy to see what others have: vacations, nice houses, expensive televisions, designer clothes, fancy cars, etc.
So I'm always thinking, "Why can't I have a vacation to Bora Bora when all of these
other people can?" Or, "Why can't I afford to spend more on a house, when all of these other people are doing it?"
And yet, I have so much. We own a house, have two cars, we both have jobs, I have a nice collection of bags, a full closet, we go out to eat... but I must be a glass half empty girl, but it's never satisfying enough.
So I've decided to really, truly, honestly, absolutely, give a go at something:
having fewer things that you appreciate more is better.For a couple of years now, I've wanted a Chanel jumbo flap:
But it's a really expensive bag, and so I haven't bought it. Well, I've been trying to save for it, but THEY KEEP INCREASING THE PRICE!! (a tiny little curse at you Chanel!). So it's getting to the point where it's now or never. And quite frankly, one bag that I really love is a lot better than a dozen bags that are nice, but not perfect. BUT, here's what this means: (and this first one hurts a bit) I have to sell some bags that I don't really need/use. And absolutely no more spending just to spend. And I'm going to make sure we spend more wisely.
1. Food: Yesterday I looked at our finances, and on average (between the grocery store and take-out), we spend $600/month on food for two people. That's just over $7,000/year. And then I looked in the refrigerator and cleaned out about $80.00 worth of food that had gone to waste. After taking stock of what we had, I realized we could make meals for the next five days, with only having to spend $17.00 at the grocery store to supplement what's already in our house. If we cut back to $300/month, we'll save tons and not waste so much.
Savings = $3,500.00/year
2. Random Shopping: When I feel bad, I shop, and then I feel better. Because of this I have a closet of stuff I wear a couple of times and then never look at again. A good rule: if you wouldn't pay full price for it, don't buy it just because it's on sale. I spend maybe $200/month on stuff like this. And I don't need any of it. This isn't to say that I'll never buy new things, but if I just cut back to what I really need and what will last? A huge step forward.
Savings = $1,200.00/year
3. Starbucks: Yes, Starbucks gets its own category. I pop in 2-3 times/week, when I could make coffee at home for a hell of a lot less, and also not get all tweeky from the espresso. A coffee from Starbucks once or twice a month is more than enough.
Savings = $575.00/year
So just by cutting back on those three things, we can put away just over $5,000.00 more every year.
Hello larger nest egg and occasional vacation!
So I'm going to cut back, take stock, clean out, and move forward. Wish me luck!!